Home loan tax benefits remain a primary reason why many Indian taxpayers prefer real estate over other asset classes. If you pay these fees during construction, the deduction window closes without providing home loan tax benefits. Pre-Possession vs. Post-Possession Tax ImpactHere's a comparison table on home loan tax benefits on pre-possession vs post-possession. Tax Component During Construction After Possession Interest (Sec 24b) No immediate claim Regular interest + 1/5th Pre-construction Principal (Sec 80C) No claim allowed Up to Rs. Consult a CA to ensure your five-instalment calculation for home loan tax benefits is accurate.